Jaishankar Urges Stronger India-Russia Trade Ties Amid Rising US Tariffs

Moscow: In the wake of the United States announcing a 50% tariff on Indian goods, External Affairs Minister S. Jaishankar called for intensified trade and economic collaboration with Russia, highlighting the growing opportunities presented by India’s expanding economy.

Addressing the India-Russia Business Forum alongside Russian Deputy Prime Minister Denis Manturov, Jaishankar emphasized that India’s GDP exceeding USD 4 trillion, coupled with sustained growth of around 7%, creates a robust demand for reliable resources, including fertilizers, chemicals, machinery, and other essential products.

“An India with a GDP of USD 4 trillion plus growing at 7% for the foreseeable future has an obvious need for large resources from dependable sources. In some cases, it could be assured supplies of essential products, fertilizers, chemicals, and machinery, being good examples,” Jaishankar said.

He highlighted initiatives such as ‘Make in India’ and other infrastructure modernization efforts as prime opportunities for Russian enterprises. “The modernization and urbanization of India generate their own demands, flowing from shifts in consumption and lifestyle. Each of these dimensions represent an invitation for Russian companies to engage more intensively with their Indian counterparts,” he added.

The External Affairs Minister also stressed that while India and Russia have maintained strong bilateral ties, trade volumes and economic cooperation remain limited. “Our trade basket remains limited, and till recently, so did our trade volume. It may have grown in recent years, but so too has the trade deficit. Both the diversification and balancing of trade now urgently mandate more strenuous efforts on our part,” Jaishankar remarked.

He underlined the importance of deeper cooperation through investments, joint ventures, and collaborative projects, noting that governments must provide the necessary guidance and environment to facilitate these activities. “We want to send a clear message that an enduring strategic partnership must have a strong and sustainable economic component,” Jaishankar said.

On the subject of the India-Eurasian Economic Union Free Trade Agreement (FTA), he revealed that the Terms of Reference have been concluded. “That will surely make a difference when concluded. We spoke about motivating joint ventures in key areas where the demand is already established. Some initiatives of significant investment levels were also spoken about,” he added.

Jaishankar’s remarks come as India seeks to mitigate the economic impact of rising US tariffs, which will reach a cumulative 50% duty from August 27.